Shares of Cantel Medical Corp. (CMD) rose 1.8% in premarket trading Tuesday, after the infection prevention products company announced an agreement to be acquired by Ireland-based Steris PLC (STE) in a cash and equity deal valued at $4.6 billion, including debt. Steris shares fell 1.2%. Under terms of the deal, Cantel stockholders will receive $16.93 in cash and 0.33787 Steris shares for each Cantel share they own. Based on Monday's closing price for Steris's stock of $200.46, that values Cantel shares at $84.66, which was Monday's closing price. That implies a market capitalization for Cantel of $3.58 billion. The companies expect annualized cost synergies of about $110 million by the fourth year after the deal closes. "We are pleased to reach this agreement with STERIS, which is the culmination of a robust process to achieve an outcome that allows Cantel shareholders to participate in the significant upside of the combined company, while also providing them with immediate cash value," said Cantel Chairman Charles Diker. Cantel's stock has soared 79.4% over the past three months through Monday, while Steris shares have gained 4.5% and the S&P 500 has advanced 7.5%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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